Big changes are coming to Company Tax returns, which will help reduce errors, save time, and make space for more valuable client work, predicts Arjun Kumar, Taxd founder.

Companies House is retiring its free webfiling service, which is good news for the accountancy profession.

From the 2026 tax season, all company tax returns must be submitted using third-party software, and Companies House will soon require the same for annual accounts. While this shift may seem like a disruption for some small businesses, it’s a long-overdue step towards accuracy, security, and efficiency.

Accountants have long dealt with the consequences of incorrect or incomplete filings made by company directors without proper support. Fixing these mistakes takes time and costs money. By pushing businesses towards software-based filing, the government is closing off error-prone routes and allowing professionals to focus on what they do best: offering expert guidance, and not correcting basic admin.

Arjun Kumar, founder, Taxd

This change comes in the broader context of the Economic Crime and Corporate Transparency Act (ECCT Act), the most significant reform to UK company law since corporate registrations began in 1844.

The act aims to tackle economic crime, strengthen corporate accountability, and improve transparency by increasing the accuracy and usefulness of data held on the Companies House register. Among the upcoming changes, small companies and micro-entities will be required to file more detailed accounts – including full profit and loss statements – and, in the case of the former, directors’ reports. All of this information will be publicly available. For accountants, the reforms are an opportunity to modernise processes, enhance advisory services, and take a more strategic role in guiding clients through a more transparent and digitally driven reporting environment.

Preparing for the end of joint filing

The phasing out of webfiling coincides with the closure of the joint online filing service offered by HMRC and Companies House. This service, which allowed companies to submit their annual accounts and Company Tax Returns in one go, will cease on 31 March 2026. From 1 April 2026, companies will need to file their Company Tax returns – including the CT600, tax computations and company accounts – via commercial software that integrates with HMRC.

Companies House’s existing web portal and paper filing services are set to be discontinued on 1 April 2027.

The reason for the closure is because the joint service is no longer fit for purpose as it does not meet modern digital standards, nor does it align with new reporting and identity verification requirements under the ECCT Act. Businesses that continue using it will be caught short.

The best course of action is to plan ahead and switch to commercial software now. It’s also wise to download at least three years of past filings, which won’t be accessible after the cut-off date.

While the free HMRC service made filing feel easier, it also increased the risk of directors submitting incomplete or inaccurate information without expert input. The shift to commercial software not only solves this but brings new benefits, from validation tools and built-in tax support to automated reminders, expert human support and seamless integration with existing accounting software like Xero, Sage and QuickBooks.

Rethinking the role of the accountant

All accounts must be tagged using the iXBRL format, making them easier to analyse and compare. The implementation of the ECCT Act will not only digitise filing processes but also enhance transparency and trust in the UK’s corporate data. From 1 April 2027, small companies will be required to file a full profit and loss account and balance sheet, along with a director’s report and auditor’s report (unless exempt). Abridged accounts will no longer be accepted, and any business claiming audit exemption must clearly state the reasons. All accounts must be tagged using the iXBRL format to facilitate easier analysis and comparison.

While this will mean more transparency for investors and the public, it also means more scrutiny, especially for small companies with limited clients, who may be able to assess how significant they are to certain suppliers based on revenue figures, potentially giving them leverage to negotiate terms accordingly.

It will fall to accountants to help these clients adapt and to explain the benefits of improved benchmarking, cleaner data, and regulatory compliance. These changes reinforce the need for accountants to move beyond compliance and into a more strategic advisory role. Automation of admin tasks frees up time for meaningful client work, from long-term planning to growth strategies.

Companies that adopt software now will be better equipped to grow, handle busy filing periods with less stress, and deliver a higher standard of service to their clients.

A new opportunity

One of the most important parts of the ECCT Act is the introduction of identity verification. From autumn 2025 (exact date to be confirmed), all company directors and persons with significant control (PSCs), will need to verify their identity with Companies House. By spring 2026, another date to be confirmed, anyone filing on a company’s behalf – including accountants – will also need to be verified.

Companies House will appoint Authorised Corporate Service Providers (ACSPs) to manage this process. Firms that already handle incorporations or filings on behalf of clients will need to register as ACSPs and support clients through this new step. While it adds responsibility, it also opens the door to a new advisory service – identity verification – which accountants are well placed to offer. It further embeds the profession in the UK’s efforts to clamp down on fraud and economic crime.

Ultimately, these changes shift the relationship between business owners, software, and professional advisors. They force a break from outdated habits and encourage a move towards more secure, streamlined, and accountable ways of working. For accountants, the ECCT Act offers a change to step up, modernise, and lead the compliance transformation.

The days of paper forms and error-prone free tools are coming to an end. The future is digital, and accountants already ahead of the game will have a competitive edge.

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